CEO and founder Michael Dell has been imploring with the major stockholders to sell their shares to him. Dell has a plan to rebuild the failing former PC powerhouse and place it back on the map. He simply needs Wall Street out of the picture. Finally, shareholders agreed to Dell’s offer of $24.9 billion to buyout their shares and reclaim his company.
Dell was happy with the results and promises to re-energize the company brand into a “leading provider” of technology solutions. Some of the biggest stockholders like Carl Icahn and Yacktman Asset Management did not go quietly into the night. The shareholders were not happy with the proposal stating the company is being “undervalued.” It seems other shareholders have strong-armed the decision and placed the power-play move into Dell’s side of the court.
Analysts in the field suggest Dell may be looking to focus on the enterprise side of a rebuilt company and look to offer more hardware/software based offerings. The midmarket business is where Dell should start focusing his attempts to gain consumer confidence again. Undertaking the corporate market in a saturated field dominated by IBM and HP may be a day late, a dollar short for Dell. The PC side of the 1984 originated company may also be on the chopping block.
There has been no word, at this time, of possible employee lay-offs. Currently, with the continued decline of the PC market, Dell may be looking to shift away from the heavy anchor of the division and streamline it considerably. There has been no mention if Dell would consider stepping into the mobile markets, but clouding and enterprise computing is leading the charge.
Within the $24.9 billion takeover will be questions to the longevity of the struggling company. Will Dell have the resources and technological review to make the proper choices for the company? For a company that once dominated the PC market, will focusing solely on enterprise and midmarket business services work? The questions are many, and only one man has the answers and he will not be sharing it publicly for sometime.